Canadian Dollar Soft After Manufacturing Sales Fall

The Canadian dollar managed to rebound versus the US dollar but was soft against other majors today. Domestic macroeconomic data was not especially bad and crude oil attempted to rally but that apparently was not enough to support the loonie.

Statistics Canada reported that manufacturing sales dropped 1.2% in June following a 1.6% increase in May. Still, it was a smaller decline than 1.8% predicted by experts. The biggest contributors to the drop were the petroleum and coal product and food industries. The primary metal industry demonstrated the biggest increase.

Now, traders wait for tomorrow’s release of inflation data. Economists expect it to show an increase of the headline Consumer Price Index by 0.1% in July after falling 0.2% in June.

USD/CAD was little changed at 1.3325 as of 21:54 GMT today. EUR/CAD advanced from 1.4759 to 1.4787. CAD/JPY declined from 80.02 to 79.71.

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